The Australian dollar is trading at around a near three-year high of about US77.5 cents, even nudging reaching US80 cents last week, as world markets shrug off the dire economic impact of COVID-19 and the local currency follows commodity prices higher. In Australia, an economic recovery is under way. Consumer spending has risen as COVID restrictions have been eased and the unemployment rate has fallen from its 2020 highs. Business and consumer confidence have lifted and commodity prices, iron ore in particular, have soared. Along with a generally weakening US dollar, this has helped push the Australian dollar higher. “Our outlook for the Australian dollar continues to be positive with the possibility that it will test five-year highs of around US81.2 cents before the end of 2021,” says Felicity Thomas, senior private wealth adviser with Shaw and Partners.